Digby, who is $43$ years old, recently met with his life insurance agent to discuss his need for individual disability income replacement insurance. He is in need of coverage because he quit his former job last year in order to set up his own consulting business. Upon leaving his old employer Digby was able to convert a portion of his group life insurance coverage to an individual policy, but not his group disability, leaving him unprotected. His first year in business he billed $$60,000,$ but he expects that his income will improve over time, as he builds his client base. He currently has $$10,000$ in liquid assets that could be used to replace income during a period of disability, if necessary. He has applied for a disability policy with the following characteristics:

An $$any occupation$$ definition of disability

A $$3,500$ monthly benefit

A $5-$year benefit period

A $60-$day elimination period

The policy came back with a premium considerably higher than Digby expected. What change could he best make to the policy to bring his premiums back in line with expectations?

Question $3$ options:

A$)$

Change the definition of disability to $$own occupation$.$

B$)$

Decrease the monthly benefit to $$3,000.$

C$)$

Change the benefit period to $$age $65.$

D$)$

Increase the elimination period to $90$ days.